Iberian Businesses Rapidly Expand Battery Storage After Blackout and Severe Storms

Industrial companies across Spain and Portugal are rapidly installing battery backup systems to safeguard production lines against power outages, following a major blackout that swept the Iberian peninsula on 28 April 2025. The shift comes as European Union subsidies encourage factories to replace fossil fuels with electricity, increasing their dependence on continuous power supplies.

The vulnerabilities of grid reliance were highlighted during the April 2025 failure, which left parts of both countries without power for several hours. At Spanish meat processing firm Fribin, located in Aragon, stopping production lines led to discarded product and financial losses of hundreds of thousands of euros. Fribin technology and systems director Andrés Altabás said that “all the lines had to be stopped” despite prioritizing refrigeration. The company, which uses over 25 gigawatt-hours of energy annually, subsequently invested around €1.5 million in two 5-megawatt-hour battery modules, supported by EU Next Generation funds.

Severe weather has further accelerated adoption. At the end of January, Storm Kristin knocked down thousands of power and telecommunications poles across central Portugal, leaving hundreds of thousands of people without electricity for up to several weeks. Miguel Matias, founder of UK-headquartered energy services firm Self Energy, noted that industrial clients are prioritizing backup power because a short power supply buffer “might guarantee that machines don’t get damaged.”

In Portugal, porcelain manufacturer Vista Alegre installed 2-megawatt-hour battery capacity at its Ílhavo facility. Emília Encarnação, representing Vista Alegre, noted that “the blackout ultimately served, above all, to accelerate this process.” Nearby, Primus Ceramics used a diesel generator to keep its electric roller kilns moving during the outage, while also utilizing two battery systems installed in 2022. Companies note that battery systems additionally offer the potential to generate revenue by selling electricity back to the main grid during favorable market conditions.

According to Spanish grid operator Red Eléctrica, battery storage capacity on the national grid expanded nearly sevenfold, from approximately 28 megawatts prior to the April 2025 outage to 193 megawatts by April 2026. Additionally, Spain’s Institute for the Diversification and Saving of Energy awarded €827 million in EU funding in December to 133 energy storage projects totaling 2,400 megawatts, with battery storage accounting for roughly 80 percent of the allocation. Storage equipment supplier Sungrow reported that commercial clients are increasingly seeking instantaneous backup capabilities to prevent operational interruptions in sensitive facilities.

Background

The European Union has introduced financial support mechanisms, including the Next Generation EU initiative and national Recovery and Resilience Plans, to assist industrial sectors in transitioning away from fossil fuels to electric power. While designed to lower greenhouse gas emissions, electrification increases exposure to grid instability, as automated machinery and industrial refrigeration rely heavily on uninterrupted power.